09/01/2024
August marked an official change in policy for the Federal Reserve as Fed Chairman Jerome Powell stated, “The time to cut rates has come,” following the Fed’s annual conference in Jackson Hole. The first-rate cut is expected in September. This month every inflation indicator showed that inflation was taming. July’s inflation reports came in as follows: The Consumer Price Index showed consumer prices rose 2.9% from one year ago. The Producer Price Index showed that wholesale prices rose 2.2% from one year ago. The Personal Consumption Expenditures Price Index, a favorite of the Fed showed a 2.5% year-over-year increase. The second quarter Gross Domestic Product, the broadest measure of the strength of the economy was revised upward from an initial estimate of 2.8% to a 3% increase. The August jobs report will be released next Friday. The Fed is watching employment closely in determining how much and how far to cut rates. They have indicated that the first cut will be in September.
August marked an official change in policy for the Federal Reserve as Fed Chairman Jerome Powell stated, “The time to cut rates has come,” following the Fed’s annual conference in Jackson Hole. The first-rate cut is expected in September. This month every inflation indicator showed that inflat...